This offsets the costs of servicing a bond and can significantly reduce the financial strain of owning an investment property. There is so much choice at www.mouseprice.com and you should be able to find a property in your chosen area at a price that you can afford.
However, prior to purchasing a property for rental purposes the investor should be aware that there are some considerations which will have a large impact on the attractiveness of the property to those who wish to rent and just how much income the rental will bring.
Here are some factors to take into account.
First find out about the potential of the property to bring in that perfect rental income. In the search for value the social media can be an exceptional resource. There are a number of groups on many of the more popular social media sites which will welcome inquiries from members and the community can provide some valuable insight.
The next step is to get a good idea of how much you would need to borrow to make your dream of purchasing a property for rental into reality. you will have to factor in the initial load requirements and the interest payments over the agreed repayment period.
Then you need to think about just who you want as a tenant. If you would prefer a settled family with kids this will influence the type of property that you will eventually purchase - and the area that you will be purchasing in.
Once you have made these sorts of decisions it's time to look at sunken costs. it's always tempting to buy that 'fixer upper' in the hope of turning into a gem. But beware - if it's just the case of a coat of paint and some cosmetic repairs then that is usually OK and can be factored into the cost with a minimum of pain to the bank account. But beware of properties where the structure itself will require work - these cost tend to have a habit of spiralling out of control extremely quickly.
Do your homework prior to making your purchase decision or taking out a loan and you will be well on the way to owning a superior rental home.